dividend yield Reits

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galway_blow_in

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hopefully this complies with the rules re_ discussing stocks

can anyone tell me what the current yield of both IRES and Hibernia is , im reading conflicting reports

one website says hibernia is 4.48% ?

with IRES at 4.09% ?
 
It’s amazing really that they don’t get as much traction or attention as real property.

A shareholder has so many benefits versus owning a property directly:

- It’s liquid, i.e. you can sell it immediately
- You can sell it cheaply
- You can increase or decrease your holding
- They can borrow more cheaply than we can so you’re accessing cheap debt
- They have economies of scale in terms of maintenance etc
- You don’t have to manage it or deal with tenants
- You’re diversified; instead of concentrated risk around one property, you’ve a little share of thousands so problem tenants or vacancies aren’t a real worry
- If you go non-resident, you’re no longer subject to CGT, whereas with a property, you are
 
Gordon Gekko said:
It’s amazing really that they don’t get as much traction or attention as real property.
Click to expand...
yea correct, I think the reason like all shares is that their share prices move immediately to events and thats what frightens people away. At the start of the year the irish reits dropped rapidly to the news of sinn fein getting so many seats and then shortly afterwards they got whacked by the corona. For example ires reit dropped from around 1.6 euros down to 0.9 euros very quickly. Of course it turned out to be a gross over reaction and nothing really changed with the business they still held the same property and collected the same rent.
Now the share price is back to where it was more or less a year ago , The big bad wolf didn't blow the house down and everyone lived happily ever after.
 
Well, you could look at it this way - I've held Hibernia REIT for a weighted average of almost 5 years now. My investment is down 15% in that time... I don't think the REIT tracks property values in this country very well.
 
BadSuperman said:
Interesting @ rob oyle - have you done any analysis to figure out why that might be the case.
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Not really... I'd held Green REIT shares too and until they were bought out, they spent most of their time underwater too. REIT shares also seem to trade well below the net asset value (not that uncommon I guess).
I hold REITs as diversification but I don't think they represent the substitute for property ownership that was originally intended.
 
rob oyle said:
Not really... I'd held Green REIT shares too and until they were bought out, they spent most of their time underwater too. REIT shares also seem to trade well below the net asset value (not that uncommon I guess).
I hold REITs as diversification but I don't think they represent the substitute for property ownership that was originally intended.
Click to expand...

I’m referring to IRES more than, say, Hibernia or Green. On the basis that IRES is pure residential.
 
I would stay away from the REIT shares.
In my mind its a trap. The yield is not real.
A lot of the UK peers have written down asset values.
 
Gordon Gekko said:
It’s amazing really that they don’t get as much traction or attention as real property.

A shareholder has so many benefits versus owning a property directly:

- It’s liquid, i.e. you can sell it immediately
- You can sell it cheaply
- You can increase or decrease your holding
- They can borrow more cheaply than we can so you’re accessing cheap debt
- They have economies of scale in terms of maintenance etc
- You don’t have to manage it or deal with tenants
- You’re diversified; instead of concentrated risk around one property, you’ve a little share of thousands so problem tenants or vacancies aren’t a real worry
- If you go non-resident, you’re no longer subject to CGT, whereas with a property, you are
Click to expand...

Agree 100% with that and would also add that it simplifies tax too as instead of trying to work out all the individual property tax deductions, you only have the dividend tax to deal with (on an annual basis). Whether it's REIT dividend, ETF dividend or Rental property it's all taxed at your marginal rate anyway.

However, I wouldn't recommend Hibernia or Green REIT, because they not diversified enough for me. I think an ETF like
IPRP = iShares European Property Yield UCITS ETF
Gives you good diversification with no currency risk.

Note REITs don't directly track property prices, they are actually based on Rental Yields. Of course, that will correlate closely to property prices, but they're not quite the same thing.
 
fistophobia said:
I would stay away from the REIT shares.
In my mind its a trap. The yield is not real.
A lot of the UK peers have written down asset values.
Click to expand...

i would think the yield is not the problem but the failure to track property prices ?

perhaps they should not be pitched as a substitute for direct investment in BTL ?
 
fistophobia said:
I would stay away from the REIT shares.
In my mind its a trap. The yield is not real.
A lot of the UK peers have written down asset values.
Click to expand...
If they write down their asset values, the price should drop and the yield will increase :)
 
Perhaps a silly question but why is one of the Irish REIT,s so chronicly illiquid in terms of trade volume?

Really steals from it's attraction
 
galway_blow_in said:
Perhaps a silly question but why is one of the Irish REIT,s so chronicly illiquid in terms of trade volume?
Click to expand...
Obviously because nobody wants to sell! ;)

Some of them are also listed in UK, so make sure it's the most liquid listing you're looking at.
Unless you're putting over 200k into them, I wouldn't be too worried about liquidity.
 
RedOnion said:
Obviously because nobody wants to sell! ;)

Some of them are also listed in UK, so make sure it's the most liquid listing you're looking at.
Unless you're putting over 200k into them, I wouldn't be too worried about liquidity.
Click to expand...

Some days the volume is below 100000
 
galway_blow_in said:
Perhaps a silly question but why is one of the Irish REIT,s so chronicly illiquid in terms of trade volume?

Really steals from it's attraction
Click to expand...
Well its alot more "liquid" than property itself remember, you don't find out daily the value of your house because its never listed. The irish property market wasn't too liquid in 2009,10 and 11 ,there was a whilethere where some property could not even get a bid
 
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